AUD/USD Price Forecast – The Australian Dollar Continues to Test Resistance

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallied during the trading session on Thursday to reach the 0.70 level. This is an area that has been important a couple of times, so it should not be surprising at all to see that the market is attracted to this level like a magnet. However, it should be noted that we are in a massive downtrend and therefore it also should not be much of a surprise to think that the market is struggling to stay above there.

With all of the “risk-off behavior” out there, it does make sense that the US dollar continues to be favored over the Aussie dollar. The Australian dollar is highly levered to commodities, so pay close attention to those as well. Nonetheless, we are in a downtrend and that is the most important thing to pay attention to. When we broke below the 0.70 level previously, it was a very negative turn of events and now it looks like the market is trying to follow through on that move.

Even if we were to rally from here, it would not be until we break above the 0.72 level that I would take any rally seriously, and I would also need to see the US dollar struggling against multiple other currencies. Because of this, it is more likely than not going to be a situation where we fade rallies going forward, taking advantage of “cheap dollars.” Regardless, the US dollar is by far the most favored currency right now, so it is difficult to go against it in this environment. I think that remains the case for some time.

AUD/USD Price Forecast Video 20.05.22

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This article was originally posted on FX Empire

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